Low Profile Additives Market is Estimated to Witness High Growth Owing to Technological Advancement in Automotive Coatings
The low profile additives market provides solutions to overcome the limitations associated with high viscosity resins by reducing the cure shrinkage and facilitating non-porous cured film. The addition of low profile additives provides smooth surface finish, high gloss, enhanced mechanical strength and excellent flow properties in plastic and composites materials. Low profile additives find wide applications in automotive coatings, transportation, construction, wind energy, industrial and decorative paints industries. The Global Low Profile Additives Market is estimated to be valued at US$ 1,247.9 Mn in 2024 and is expected to exhibit a CAGR of 6.4% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Low Profile Additives are Wacker Chemie AG, INEOS AG, Polynt S.p.A., Vin Industries, BASF SE, Altana, Polychem Ltd., Swancor, LyondellBasell Industries Holdings B.V., Aromax Technology Corp., Interplastic Corp., Synthomer PLC, AOC, LLC, Mechemco, Taak Resin Co., NOF Corporation.
Key opportunities in the Low Profile Additives Market Demand include development of bio-based low profile additives, increased focus on development of UV curable low profile additives systems for wood coatings. Technological advancement in automotive coatings such as introduction of thermoset low profile additive systems to achieve excellent mechanical and aesthetic properties in vehicles.
Market Drivers
Increasing demand from automotive industry: Low profile additives find major application in automotive coatings industry. Their use in manufacturing automotive parts enhances the surface finish, strength and abrasion resistance of cars. Rapid growth of automotive sector globally is a key factor driving the low profile additives market.
Growth of construction industry: Construction industry utilizes low profile additives in industrial coatings, decorative paints and flooring applications. Expansion of construction activities around the world due to rapid urbanization and infrastructure development projects fuels the demand for low profile additives.
Current challenges in the Low Profile Additives Market
The Low Profile Additives Market is facing challenges due to rising raw material prices and supply chain disruptions. Owing to the COVID-19 pandemic and geo-political tensions, there have been significant increases in prices of crucial raw materials like styrene, acrylates and methacrylates which are important feedstocks for low profile additive manufacturing. This has put upward pressure on prices of low profile additives. Furthermore, supply chain disruptions caused by pandemic lockdowns and restrictions have impacted the regular supply of these additives to end use industries like automotive, coatings and construction. Meeting just-in-time production requirements of customers has become difficult. Sustainable sourcing of raw materials while maintaining cost competitiveness remains a key challenge.
SWOT Analysis
Strength: Low profile additives provide surface leveling properties and sag resistance to coatings, composites and thermosets. They enable applications where flat, smooth surfaces are required.
Weakness: Environmental regulations over volatile organic compound emissions during additive manufacturing can increase compliance costs. Certain products may have toxicity concerns requiring careful handling.
Opportunity: Growth in end use industries like wind turbine blades, marine coatings and infrastructure projects offers new areas for application development and market expansion.
Threats: Competition from alternative materials that provide similar surface properties at lower costs can impact market share. Economic slowdowns can negatively impact demand from cyclical end use sectors.
Geographical regions
North America currently accounts for the largest share of the low profile additives market, both in terms of value and volume. This is due to large size of construction and transportation industries in the US and Canada which drive significant demand. Asia Pacific is the fastest growing regional market with China spearheading demand growth on back of its mammoth construction and infrastructure development activities.
Fastest growing region
Asia Pacific region is poised to be the fastest growing regional market for low profile additives over the forecast period driven by China, India, Indonesia, Vietnam and other developing Asian countries. Rising expenditure on building new housing, roads, rail, airports and other projects is translating to increased consumption of coatings, adhesives, composites and thermosets where low profile additives find application. Rapid industrialization and growth of automotive and transportation manufacturing hubs in Asia provides tailwinds to future demand uptick.
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1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it